Brian Cornell has served as the Chief Executive Officer of Target Corporation since 2014, leading the retail giant through a decade of transformation. Under his leadership, Target strengthened its store footprint, expanded its e-commerce capabilities, and launched successful private-label brands. He is widely credited with modernizing the company and steering it through crises such as the COVID-19 pandemic and changing consumer habits.
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Now, after more than 10 years at the helm, Cornell is preparing to step down as CEO on February 1, 2026. He will remain with the company as chairman of the board, ensuring continuity as the retailer transitions to new leadership.
Why is Brian Cornell stepping down as CEO?
The decision to step down comes after careful planning. Cornell, who is now 65 years old, agreed in 2022 to stay on as CEO for an additional three years, even though he had reached the company’s customary retirement age. At the time, Target had not announced a successor nor revealed when his extended term would end.
Now, with that extended timeline nearing its conclusion, Target has officially announced a succession plan. The company named Michael Fiddelke, current Chief Operating Officer, as its next CEO. Cornell noted in a media call that he worked closely with the board on a multi-year succession process and evaluated both internal and external candidates.
What challenges did Cornell face during his tenure?
While Cornell’s leadership brought significant innovations and brand strength, the last few years have presented major hurdles. Target has struggled with:
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Inventory mismanagement, especially in discretionary categories like apparel and electronics
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Declining sales growth, with comparable store sales down in recent quarters
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A 23% drop in stock value over the past five years, while rivals like Walmart and Costco soared
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Public backlash after scaling back diversity, equity and inclusion (DEI) initiatives in early 2024
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Rising cost pressures, including tariffs and inflation impacting consumer behavior
Cornell acknowledged the financial and operational headwinds: “We were facing some major financial and operational hurdles as we entered the year. This was further complicated by the multiple changes in tariffs policy,” he told investors.
Is Cornell retiring from Target entirely?
No. While Brian Cornell will step down from the CEO position, he will not be leaving the company. He will transition into the role of chairman of the board. This move ensures that Target retains his expertise and leadership insights during the company’s next phase of strategic development.
This type of transition is common in large corporations and is often seen as a way to provide stability and preserve institutional knowledge during a change in executive leadership.
What does this mean for Target’s future?
Target is entering a critical period. The appointment of Michael Fiddelke as CEO, while aimed at continuity, was met with skepticism by some investors, who were hoping for an external candidate to bring fresh perspective. The company’s stock dropped more than 7% following the announcement.
Still, the board expressed strong confidence in Fiddelke. Christine Leahy, lead independent director, stated: “It’s clear that Michael is the ideal leader to drive Target’s growth, refocus and accelerate the company’s strategy, and solidify its leadership in a highly dynamic and constantly evolving retail environment.”
Fiddelke will be tasked with stabilizing sales, improving merchandise strategy, and investing in digital and store technologies—all while navigating external economic pressures and shifting consumer behaviors.
